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TABLE OF CONTENTS

Serial number particulars Page number

1 Introduction 2-18

Objectives scope andlimitations 19-20

2 Company profile 21-24

3 Industry profile 25-33

4 Literature review 34-38

5 Research methodology& tool used

39-43

6 Data analysis andinterpretation

44-73

Nav of STANDARDCHARTEREDNav of HDFC

Nav of ICICI

Nav of RELIANCE

7 CONCLUSION ANDRECOMMENDATIONS

74-76

Bibliography 77


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I.I INTRODUCTION TO MUTUAL FUND:

A mutual fund is a trust that pools the savings of a number of investors who share

common financial goal. The money thus collected is then invested in capital market

instruments such as shares, debentures and other securities. The income earnedthough these investments and the capital appreciation realized are shared by its unit

holders in proportion to the number of units owned by them. Thus a mutual fund is the

most suitable investment for the common man as it offers an opportunity to invest in a

diversified, professionally managed basket of securities at a relatively low cost.

MUTUAL FUND OPERATION FLOW CHART:

Figure showing mutual fund operation flow chart

The investment company is responsible for the management of the fund, and it sells

shares in the fund to individual investors. When you invest in a mutual fund, you

become a part owner of a large investment portfolio, along with all the other

shareholders of the fund. When you purchase shares, the fund manger invests yourfunds, along with the money contributed by the other shareholders. Every day, the fund

manger counts up the value of all the funds holdings, figures out how many shares

have been purchased by shareholders, and then calculates the net asset value (NAV) of

the mutual fund, the price of a single share of the fund on the day. If you want to buy

shares, you just send the manger your money, and they will issue new shares for you at


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the most recent price. This routine is repeated every day on a never-ending basis,

which is why mutual funds are sometime known as open-end funds. If the fund

manager is doing a good job, the NAV of the fund will usually get bigger-your shares will

be worth more. But exactly how does a mutual funds NAV increase? The re are a

couple of ways that a mutual fund can make money in its portfolio.

A mutual fund can receive dividends from the stocks that it owns. Dividends are

share of corporate profits paid to the stockholders of public companies. The fund

might have money in the bank that earns interest, or it might receive interest

payment from bonds that it owns. These are all sources of income for the fund.

Mutual funds are required to hand out (or distribute) this income to

shareholders. Usually they do this twice a year in a move thats called a income

distribution.

At the end of the year, a fund makes another kind of distribution, this time from

the profits they might make by selling stocks or bonds that have gone u ice.

These profits are known as capital gains, and the act of passing them out is

called a capital gains distribution.

Despite the differences, all mutual funds comprise four constituents: Sponsors,

Trustees, Asset Management Companies (Macs) and custodians.

Sponsor:

The sponsor initiates the idea to set up a mutual fund. It could be a registered company,

scheduled bank or financial institution A sponsor has to satisfy certain conditions, such

as on capital, track record (at least five years operation in financial services), default -

free dealings and a general reputation of fairness, has to be ascertained. The sponsor

appoints the trustees, AMC and custodian. Once the AMC is formed, the sponsor is just

a stakeholder.


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Trust / Board of Trustees:

Trustees hold a fiduciary responsibility towards unit holders by protecting their interests.

Sometimes, as with canara bank, the trustee and the sponsor are the same. For other,like SBI Funds Management, State Bank of India is the sponsor and SBI capital market

the trustee.

Trustees float and market schemes; and also they secure necessary approvals.

They check whether the investments of the AMC are within defined limits, whether the

funds assets are protected, and also whether the unit holders get their due returns

Fund managers / AMC:

They are the ones who manage the investors money. AMC takes investment decisions,

compensates investors through dividends, maintains proper accounting and information

for pricing of units, calculates the NAV, and provides information on listed schemes and

secondary market unit transactions. It also exercises due diligence on investments, and

submits quarterly reports to the trustees.

Custodian:

It is often an independent organization, and it takes custody of securities and other

assets of a mutual fund. Among public sector mutual funds, the sponsor or trustee

generally also acts as the custodian. Unfortunately, funds dont always make money. If

the fund managers made some investments that didnt work out, selling some

investment for less than the original purchases price, the fund manger may have some

capital losses. Everyone hates to have losses, and funds are no different. The goodnews is that these losses are subtracted from the funds capital gains before the money

is distributed to shareholders. If losses exceed gains, a fund manager can even pile up

these losses and use them to offset future gains in the portfolio. That means that the

fund wont pass out capital gains to shareholders until the fund had at least earned

more in profits than it had lost.


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Characteristics of Mutual Funds

A mutual fund actually belongs to the investors who have pooled their funds. The

ownership of the mutual fund is in the hands of the investors.

A mutual fund is managed by investment professionals and others services

providers, who earn a fee their services, from the fund.

The pool of the funds is invested in a portfolio of marketable investments. The

value of the portfolio is updated every day.

The investors share in the fund is denominated by units. The value of the unit s

changes with the change in the portfolios value, everyday. The value of one unit

of the investment is called as the Net Asset Value or NAV The investment portfolio of the mutual fund is created accordingly to the stated

investment objectives of the funds.

1.1 HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY:

The mutual fund industry in India started in 1963 with the formation of Unit Trust of

India, at the initiative of the government of India and Reserve Bank .The history of

mutual funds in India can be broadly divided into four distinct phases.

FIRST PHASE-1964-87

An act of parliament establishment unit trust of India (UTI) on 1963.It was set up by

the Reserve bank of India and functioned under the Regulatory and administrative

control of the Reserve bank of India. In 1978 UTI was de-linked from the RBI and the

industrial development Bank of India (IDBI)) took over the regulatory and administrative

control in place of RBI. The first scheme launched by UTI was unit scheme 1964.At the

end of 1988 UTI had Rs.6,700 crores of assets under management.


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SECOND PHASE-1987-1993(ENTRY OF PUBLIC SECTOR FUNDS)

1987 marked the entry of non-UTI, public sector mutual funds set up by public sector

banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation

of India (GIC). SBI Mutual Fund was the first non-UTI Mutual Fund established in June

1987 followed by Can bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund

(Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (June 90). LIC established

its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. At

the end of 1993, the mutual fund industry had assets under management of Rs.47, 004

crores.

THIRD PHASE-1993-2003 (ENTRY OF PRIVATE SECTOR FUNDS):

With the entry of private sector funds in 1993, a new era started in the Indian mutual

fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was

the year in which the first Mutual Fund Regulations came into being, under which all

mutual funds, except UTI were to be registered and governed. The erstwhile Kothari

Pioneer (nowmergedwithFranklinTempleton) was the first private sector mutual fund

registered in July 1993.The 1993 SEBI (Mutual fund) Regulations were substituted by a

more comprehensive and revised Mutual Fund Regulations in 1996.The industry now

functions under the SEBI (Mutual Fund) Regulations in 1996.The number of mutual fund

houses went on increasing, with many foreign mutual funds setting up funds in India

and also the industry gas witnessed several mergers and acquisitions. As at the end of

January 2003, there were 33 mutual funds with total assets of Rs.1, 21825 crores.The

Unit Trust of India with Rs.44, 541 crores of assets under management was way ahead

of other mutual funds.


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FOURTH PHSESINCE FEBRUARY 2003

In February 2003, following he repeal of the Unit Trust of India Act 1963 UTI was

bifurcated into two separate entities. One is the specified undertaking of the unit Trust

of India with assets under management of Rs.29,835 crores as at the end of January

2003, representing broadly, the assets of Us 64 scheme, assured return and certain

other schemes. The specified undertaking of Unit Trust of India, functioning under an

administrator and under the rules framed by Government of India and does not come

under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund

Ltd, sponsored by SBI, PNB, BOB and LIC. It s registered with SEBI and functions

under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had

in March 2000 more than Rs.76,000 crores of assets under Management and with he

setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and

with recent mergers taking place among different private sector funds, the mutual fund

industry has entered its current phase of consolidation and growth. As at the end of

October 31, 2003, there were 31 funds, which manage assets of Rs.1, 26,726 crores

under 389 schemes.

The graph indicates the growth of assets over the years . Growth in assets

under management


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Figure showing the growth of assets over the years. Growth in assets

under managementNote:

Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified Undertaking

Of the Unit Trust of India effective from February 2003. The Assets under management

of the Specified Undertaking of the Unit Trust of India has therefore been excluded from

the total assets of the industry as a whole from February 2.003onwards.


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CLASSIFICATION OF MUTUAL FUNDS:

Mutual fund schemes may be classified on the basis of its structure and its investment

objective.

BY STRUCTURE:

Open-end-Funds:

An open-end fund is one that is available for subscription all through the year. These do

not have a fixed maturity .Investors can conveniently buy and sell units at Net Asset

Value (NAV) related prices. The key feature of open-end schemes is liquidity.

Closed-end-Funds:

A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15

years. The fund is open for subscription only during a specified period. Investors can

invest in the scheme at the time of the initial public issue and thereafter they can buy or

sell the units of the scheme on the stock exchanges where they are listed. In order to

provide an exit route to the investors, some close-ended funds give an option of selling

back the units to the Mutual Fund through periodic repurchase at NAV related prices.

SEBI Regulations stipulate that at least one of the two exit routes is provided to the

investor.

Interval-Funds:

Interval fund combine the features of open-ended and close-ended schemes. They are

open for sale or redemption during pre-determined intervals at NAV related prices.

Growth Funds:The aim of growth funds is to provide capital appreciation over the medium to long term.

Such schemes normally invest a majority of their corpus in equities. It has been proved

that returns from stocks, have outperformed most other kind of investments held over

the long-term. Growth schemes are ideal for investors having a long term outlook

seeking growth over a period of time.


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Income-Funds:

The aim of income funds is to provide regular and steady income to investors. Such

schemes generally invest in fixed income securities such as bonds, corporate

debentures and government securities. Income Funds are ideal for capital stability and

regular income

Balance-Funds:

The aim of balanced funds is to provide both growth and regular income. Such

schemes periodically distribute a part of their earning and invest both in equities and

fixed income securities in the proportion indicated in their offer documents. In a rising

stock market, the NAV of these schemes may not normally keep pace, or fall equally

when the market falls. These are ideal for investors looking for a combination of income

and moderate growth.

Money-Market-Funds:

The aim of money market funds is to provide easy liquidity, preservation of capital

and moderate income. These schemes generally invest in safer short-term instruments

such as treasury bills, certificates of deposit, commercial paper and inter-bank call

money. Returns on these schemes may fluctuate depending upon the interest ratesprevailing in the market. These are ideal for corporate and individual investors as a

means to park their surplus funds for short periods.

Gilt Fund:

These funds invest exclusively in government securities. A government security has

no default risk. NAVs of these schemes also fluctuate due to changes in interest rates

another economic factor as is the case with income or debt-oriented schemes.Index Fund:

Index funds replicated the portfolio of a particular index such as the BSE sensitive

index, S&P NSE 50 index (Nifty), etc. These schemes invest in the securities in the

same weight age comprising an index. NAVs of such schemes would rise or fall in


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accordance with the rise or fall in the index, through not exactly by the same percentage

due to some factors know as tracking error in technical terms. Necessary disclosures

in this regard are made in the offer documents of the mutual fund scheme These are

also exchange traded index funds launched by the mutual funds are traded on the stock

exchanges.

OTHER SCHEMES:

TAX-SAVING-SCHEMES:

These schemes offer tax rebates to the investors under specific provisions of the

Indian income tax laws as the government offers tax incentives for investment in

specified avenues. Investments made in Equity linked savings schemes (ELSS) and

pension schemes are allowed as deduction u/s 88 of the Income tax act,1961. The act

also provides opportunities to investors to save capital gains u/s 54EA and 54EB by

investing in Mutual funds.

SPECIAL SCHEMES:

Industry Specific Schemes:

Industry specific schemes invest only in the industries specified in the offer

document. The investment of these funds is limited to specific industries like Info Tech,

FMCG, and Pharmaceuticals etc.

Index Schemes:

Index Funds attempt to replicate the performance of a particular index such as the

BSE sensex or the NSE 50

Sectoral Schemes:

Sectoral funds are those, which invest, exclusively sector. This could be an industry

or a group of industries or various segments such as A Group shares or initial public

offerings.


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ASSET MANAGEMENT COMPANY (AMC):

The AMC is appointed by the Trustee as the Investment Manager of the Mutual Fund.

The AMC is required to be approved by the Securities and Exchange Board of India

(SEBI) to act as an asset management company of the Mutual Fund. At least 50% of

the directors AMC are independent directors who are not associated with the Sponsor in

any manner. The AMC must have a net worth of at least 10 crore at all times.

Reasons for the Advantages:

Security and reduced risk.

Availability of expert advice of professional management.

Diversification of portfolio for best returns.

Automatic investment of returns.

Best selection and timing of investment through professional approach.

Liquidity of investment.

Such invest promote savings habit.

Tax shelter from various taxes.

Safety because for government regulation.

Economies of scale, which maximize returns and minimizes cost.

Saving schemes of mutual funds.

REASONS FOR RISE AND DOWNFALL OF PRICE:

1. Government policies

2. Natural calamities

3. Management of performance

4. Internal and external factor

5. Political reasons


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BENEFITS OF INVESTING IN MUTUAL FUNDS:

Its seems strange to compare mutual funds to stocks since mutual funds are primarily

composed of stocks, but it is important to distinguish the two because there are somenotable advantages to using mutual funds.

Professional-Management:

Mutual funds provide the services of experienced and skilled professionals, backed

by a dedicated investment research team that analyses the performance and prospects

of companied and selects suitable investments to achieve the objectives of the scheme.

Diversification:

Mutual funds invest in a number of companies across a broad cross-section of

industries and sectors. This diversification reduces the risk because seldom do all

stocks decline at the same time and in the same proportion. You achieve this

diversification through a Mutual Fund with far less money than you can do on your own.

Convenient-Administration

Investing in a Mutual fund reduces paperwork and helps avoid many problems such

as bad deliveries, delayed payments and follow up with brokers and companies. Mutual

funds save your time and make investing easy and companies. Mutual funds save your

time and make investing easy and convenient.

Return Potential:


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Over a medium to long-term, Mutual funds have the potential to provide a higher return

as they invest in a diversified basket of selected securities.

Low-Costs

Mutual Funds are a relatively less expensive way to invest compared to directly

investing in the capital markets because the benefits of scale in brokerage, custodial

and other fees translate into lower costs for investors.

Liquidity:

In open-end schemes, the investor gets the money back promptly at net asset value

related prices from the Mutual fund. In closed-end schemes, the units can be sold on a

stock exchange at the prevailing market price or the investor can avail of the facility of

direct repurchase at NAV related prices by the Mutual Fund

Transparency:

You get regular information on the value of your investment in addition to disclosure on

the specific investments made by your scheme, the proportion invested in each class of

assets and the fund managers investment strategy and outlook.

Flexibility:

Through features such as regular investment plans, regular withdrawal plans and

dividend reinvestment plans, you can systematically invest or withdraw funds according

to your needs and convenience.


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Affordability:

Investors individually may lack sufficient funds to invest in high grade stocks. A

Mutual fund because of its large corpus allows even a small investor to take the benefit

of its investment strategy.

Choice-Of-Schemes:

Mutual Funds offer a variety of schemes that will suit your needs over a life time. When you

enter a new stage in your life, all you need to do is sit down with your investment advisor who

will help you to rearrange your portfolio to suit your altered lifestyle.

Get Focused:

I will admit that investing in individual stocks can be fun because each company has a

unique story. However, it is important for people to focus on making money. Investing

isn't a game. Your financial future depends on where you put you hard earned dollars

and it shouldn't be taken lightly.

Even if some of us are better at picking stocks than a professional and their support

staff, most of us would not want to spend the amount of time it takes to watch, research

and trade the market on a daily basis

Efficiency:

By pooling investors' monies together, mutual fund companies can take advantage of

economies of scale. With large sums of money to invest, they often trade commission-

free and have personal contacts at the brokerage firms.

Ease of Use :

Can you imagine keeping track of a portfolio consisting of hundreds of stocks? The

bookkeeping duties involved with stocks are much more complicated than owning a


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mutual fund. If you are doing your own taxes, or are short on time, this can be a big

deal.

Well Regulated:

All mutual funds are registered with SEBI and they function with in the provision of

strict regulations designed to protect the interests of investors. The operations of Mutual

funds are regularly monitored by SEBI.

HOWEVER MUTUAL FUNDS DO SUFFER FROM FOLLOWING

DRAWBACKS.

NO GUARANTEES No:

Investment is risk free. If the entire stock market declines in value, the value of

mutual fund shares will go down as well, not matter how balanced the portfolio.

Investors encounter fewer risks when they invest in mutual funds than when they

buy and sell stocks on their own. However, anyone who invests through a mutualfund runs the risk of losing money.

FEES COMMISSIONS:

All funds charge administrative fees to cover their day-to-day expenses. Some

funds also charge sales commissions or loads to compensate brokers, financial

consultants, or financial planners. Even if you dont use a broker or other financial

adviser, you will pay a sales commission if you buy shares in a Load fund.

TAXES

During a typical year, most actively managed mutual funds sell anywhere from

20 to 70 percent if the securities in their portfolios. If your fund makes a profit on its


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sales, you will pay taxes on the income receive, even if you reinvest the money you

made.

MANAGEMENT RISK

When you invest in a mutual fund, you depend on the funds manager to make

the right decisions regarding the funds portfolio. If the manager does not perform

as well as you had hoped, you might not make as much money on your investment

as you expected. Of course, if you invest in INDEX FUNDS, you forego

management risk, because these funds do not employ manage.

RISK ASSOCIATED WITH MUTUAL FUND INVESTMENT:

At the cornerstone of investing is the basic principle that the greater the risk you

take, the greater the potential reward. Typically risk is defined as short-term price

variability. But on a long-term basis, risk is the possibility that your accumulated real

capital will be insufficient to meet your financial goals. And if you want to reach your

financial goals, you must start with an honest appraisal of your own personal comfort

zone with regard to risk, individual tolerance for risk varies, creating a distinct

investment personality for each investors. Some investor can accept short-term

volatility with ease, others with near panic. So whether you consider your investment

temperament to be conservative, moderate or aggressive you need to focus on how

comfortable or uncomfortable you will be as the value of your investment moves up or

down. Mutual Funds offer incredible flexibility in managing Investment risk.

Diversification and Automatic Investing (SIP) are two key techniques you can to reduce

your investment risk considerably and reach your long-term financial goals.

TYPES OF RISKS:

All investment involves some form of risk. Even an insured bank account is subject

to the possibility that inflation will rise faster than your earning, leaving you with less real

purchasing power than when you started (Rs. 1000 gets you less than it got your father


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when he was your age). Consider these common types of risk and evaluate them

against potential rewards when you select an investment.

Market Risk

At times the prices or yields of all the securities in a particular market rise or fall due

to broad outside influence. When this happen, the stock prices of both an outstanding,

highly profitable company and a fledgling corporation may be affected. This change in

price is due to market risk.

Inflation Risk:

Sometimes referred to as loss of purchasing power. Whenever inflation sprints

forward faster than earnings on your investment, you run the risk that youll actual be

able to buy less, not more. Inflation risk also occurs when prices rise faster than your

returns.

Credit Risk:

In short, how stable is the company or entity to which you lend your money when you

invest. How certain are you that it will able to pay the interest you are promised, or

repay your principal when the investment matures?

Objectives of the study:

1. To examine the benefits available for Mutual Fund investment.

2. To examine the market trends of the Mutual fund schemes and analyze them.

3. To analyze which combination will be better from investor point of view.

4. To evaluate the benefits of investing in Mutual Funds


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5. To examine the performance of Equity fund scheme of STANDARD CHARTERED

HDFC, ICICI and RELIANCE mutual funds.

Scope of the Study:

The study is taken up from 15-11-2013 to 14-02-2014, that is a quarter period in

which an analysis of NAV and returns of 4 funds are undertaken on weekly basis i.e on

every Monday of the period of the study.

The study covers NAV and returns. Its analysis for the period of four months on the

basis of trend movement of NAV and returns. The project duration is 20-12-2013 TO 15-

02-2014.

Limitations of the study:

1. The main limitation of Mutual Fund is that it takes time to invest money. Unfortunately

most mutual Funds receive money when markets are in boom phase and investors are

willing to try out Mutual Funds.

2. Since it is difficult to invest all Funds in one day there is some money waiting to be

invested. Further, there may be a time lag between investment opportunities are

identified.

3.. The other limitation of a Mutual Fund is the trading limitation, where the Funds are

highly liquid in general most Mutual Funds (called open-ended Funds) cannot be

bought or sold in the middle of the trading day. Investors can only buy and sell them at

the end of the day, after they have calculated value of their holdings.

4. The portfolios of the Funds does not remain constant. The extent to which the

portfolios changes is a function of the style of the individual Fund manager.

5. it is also dependent of the volatility of the Fund size, i.e. whether the Fund is

constantly receives fresh subscriptions and redemptions.


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CHAPTER-2

COMPANYS PROFILE


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ABOUT US

We are a one-stop financial services shop, most respected for quality of its advice,

personalized service and cutting-edge technology.

VISION

Our vision is to be the most respected company in the financial services space.

Money is the heart of our business. Whether it is deploying your surplus funds or

raising funds for your needs we empower you, with an array of financial services.

HISTORY

We were founded in 1995 by Mr. Nirmal Jain (Chairman and Managing

Director) as an independent business research and information provider. We

gradually evolved into a one-stop financial services solutions provider. Our

strong management team comprises competent and dedicated professionals

We are a pan-India financial services organization across 1,361 business

locations and a presence in 428 cities. Our global footprint extends across

geographies with offices in New York, Singapore and Dubai. We are listed on

the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

We offer a wide range of services and products comprising broking (retail and

institutional equities and commodities), wealth management, credit andfinance, insurance, asset management and investment banking.

We are registered with the BSE and the NSE for securities trading, MCX,

NCDEX and DGCX for commodities trading, CDSL and NSDL as depository


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participants. We are registered as a Category I merchant banker and are a

SEBI registered portfolio manager. We also received the FII license in IIFL Inc.

IIFL Securities Pvt Ltd received approval from the Monetary Authority of

Singapore to carry out corporate advisory and dealing in securities operations.Two subsidiaries India Infoline Investment Services and Moneyline Credit

Limitedare registered with RBI as non-deposit taking non-banking financial

services companies. India infoline Housing Finance Ltd, the housing finance

arm, is registered with the National Housing Bank.


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The India Infoline group, comprising the holding company, India Infoline Ltd and its

wholly owned subsidiaries offers the entire gamut of Investment products ranging from

Equities and Derivatives trading, Commodities trading, Portfolio management Services,

Mutual Funds, Life Insurance, Fixed deposits, Golbonds, Loan products and other small

savings instruments. It also owns and operates websites, www.indiainfoline.com and

www.5paisa.com.

India Infoline is a forerunner in the field of equity research. India Infolines research is

acknowledged by none other than the Forbes as The best of the web and a must

read for investor in Asia. India Infolines research is available not just over the Internet

but also on international wire services like Bloomberg (code: IILL), Thomson first call

and Internet securities where it is amongst the most read Indian brokers..The 5paisa

trading interface is one of the most advanced platforms available to retail investor in

India. It has a SEBI license for Portfolio Management under which, various schemes are

offered, which have been consistently beating benchmark indices since inception.

5paisa is the trade name of India Infoline Securities Pvt. Ltd, a wholly owned subsidiary

of India Infoline Ltd.5paisa holds membership of both the leading stock exchange ofIndia viz..It has tied up with the leadings banks for funds transfer facilities viz. Citibank,

CenturianBank, HDFC Bank, ICICI Bank and UTI Bank.

The group has a membership of the MultiCommodities Exchange (MCX), National

Commodities and Derivatives Exchange of India (NCDEX) and the Dubai Gold

Commodities Exchange (DGCX).

India Infoline is listed on BSE and NSE with a market capitalization of over $150million.


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CHAPTER-3

INDUSTRIAL PROFILE


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ABOUT STOCK EXCHANGE:

A stock exchange, share market or bourse is a corporation or mutual

organization which provides facilities for stock brokers and traders, to trade company

stocks and other securities. Stock exchanges also provide facilities for the issue and

redemption of securities, as well as, other financial instruments and capital events

including the payment of income and dividends. The securities traded on a stock

exchange include: shares issued by companies, unit trusts and other pooled investment

products and bonds. To be able to trade a security on a certain stock exchange, it has

to be listed there.

HISTORY OF STOCK EXCHANGE:

In 12th century France the courratiersde changewere concerned with managing and

regulating the debts of agricultural communities on behalf of the banks. As these men

also traded in debts, they could be called the first broker.

In the middle of the 13th century, Venetian bankers began to trade in

government securities. In 1351, the Venetian Government outlawed spreading rumors

intended to lower the price of government funds. There were people in Pisa, Verona,

Genoa and Florence who also began trading in government Securities during the 14th

century.

This was only possible because these were independent city states ruled by a

council of influential citizens, not by a Duke. The Dutch later started joint stock

companies, which let shareholders invest in business ventures and get a share of their

profits - or losses. In 1602, the Dutch East India Company issued the first shares on the

Amsterdam Stock Exchange. It was the first company to issue stocks and bonds. In

1688, the trading of stocks began on a stock exchange in London.


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Importance of stock market

Function and Purpose:

The stock market is one of the most important sources forcompanies to raisemoney.

This allows businesses to go public, or raise additional capital for expansion. The

liquidity that an exchange provides affords investors the ability to quickly and easily sell

securities. This is an attractive feature of investing in stocks, compared to other less

liquid investments such asreal estate.

History has shown that the price ofshares and other assets is an important part

of the dynamics of economic activity, and can influence or be an indicator of social

mood. Rising share prices, for instance, tend to be associated with increased business

investment and vice versa. Share prices also affect the wealth of households and their

consumption. Therefore,central banks tend to keep an eye on the control and behavior

of the stock market and, in general, on the smooth operation of financial system

functions. Financial stability is the raison d'tre of central banks.

Exchanges also act as the clearinghouse for each transaction, meaning that

they collect and deliver the shares, and guarantee payment to the seller of a security.

This eliminates the risk to an individual buyer or seller that the counterparty could

default on the transaction. The smooth functioning of all these activities facilitates

economic growth in that lower costs and enterprise risks promote the production of

goods and services as well as employment. In this way the financial system contributes

to increased prosperity.

ROLE OF STOCK EXCHANGES:

Raising capital for businesses.

Mobilizing savings for investment.

Facilitating company growth.

Redistribution of wealth.
http://en.wikipedia.org/wiki/Companieshttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Liquidityhttp://en.wikipedia.org/wiki/Real_estatehttp://en.wikipedia.org/wiki/Share_(finance)http://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/Financial_systemhttp://en.wikipedia.org/wiki/Counterpartyhttp://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Counterpartyhttp://en.wikipedia.org/wiki/Financial_systemhttp://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/Share_(finance)http://en.wikipedia.org/wiki/Real_estatehttp://en.wikipedia.org/wiki/Liquidityhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Companies


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Corporate governance.

Creating investment opportunities for small investors.

Government capital-raising for development projects.

REGIONAL STOCK EXCHANGES (RSE) OF INDIA

The Regional Stock Exchanges in India started spreading its business operations

from 1894. The first RSE to start its functioning in India was Ahmadabad Stock

Exchange (ASE) followed by Calcutta Stock Exchange (CSE) in 1908.

Catalog of Regional Stock Exchanges in India

Ahmadabad Stock Exchange

Bangalore Stock Exchange

Bhubaneswar Stock Exchange

Calcutta Stock Exchange

Cochin Stock Exchange

Coimbatore Stock Exchange

Delhi Stock Exchange

Guwahati Stock Exchange

Hyderabad Stock Exchange Jaipur Stock Exchange

Ludhiana Stock Exchange

Madhya Pradesh Stock Exchange

Madras Stock Exchange

Magadha Stock Exchange

Mangalore Stock Exchange

Meerut Stock Exchange

OTC Exchange Of India

Pune Stock Exchange

Saurashtra Kutch Stock Exchange

Uttar Pradesh Stock Exchange

Vadodara Stock Exchange


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BOMBAY STOCK EXCHANGE:

This stock exchange, Mumbai, popularly known as BSE was

established in 1875 as The Native share and stock brokers association, as a

voluntary non- profit making association. It has evolved over the years into its present

status as the premiere stock exchange in the country. It may be noted that as the

oldest one in Asia, even older than the Tokyo Stock Exchange, which was founded in

1878.

The exchange, while providing an efficient and transparent market for trading in

securities, upholds the interests of the investors and ensures redressed of their

grievances, whether against the companies or its own member brokers. It also strives

to educate and enlighten the investors by making available necessary informativeinputs and conducting investor education programmers.

A governing board comprising of 9 elected directors, 2 SEBI nominees, 7 public

representatives and an executive director is the apex body, which decides the

policies and regulates the affairs of the exchange.

The Executive director as the chief executive officer is responsible for the day to day

administration of the exchange. The average daily turnover of the exchange during

the year 2000-01(April-March) was Rs 3984.19 crores and average number of daily

trades 5.69 Lakhs.

However the average daily turnover of the exchange during the year 2001-02 has

declined to Rs. 1244.10 crores and number of average daily trades during the period

to 5.17 lakhs.

The Ban on all deferral products like BLESS AND ALBM in the Indian capital markets

by SEBI with effect from July 2, 2001, abolition of account period settlements,

introduction of compulsory rolling settlements in all scripts traded on the exchanges

with effect from Dec 31, 2001, etc., have adversely impacted the liquidity and

consequently there is a considerable decline in the daily turnover at the exchange.

The average daily turnover of the exchange present scenario is 110363(laces) and

number of average daily trades 1057(lacs)


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BSE INDICES:

In order to enable the market participants, analysts etc., to trace the various ups anddowns in the Indian stock market, the Exchange has introduced in 1986 an equity

stock index called BSE-SENSEX that subsequently became the barometer of the

moments of the share prices in the Indian Stock market. It is a Market capitalization

weighted index of 30 component stocks representing a sample of large, well -

established and leading companies. The base year of Sensex is 1978-79. The

Sensex is widely reported in both domestic and international markets through print as

well as electronic media.

Sensex is calculated using a market capitalization weighted method. As per this

methodology, the level of the index reflects the total market value of all 30-component

stocks from different industries related to particular base period. The total market

value of a company is determined by multiplying the price of its stock by the number

of shares outstanding. Statisticians call an index of a set of combined variables (such

as price and number of shares) a composite Index. An Indexed number is used to

represent the results of this calculation in order to make the value easier to work with

and track over a time. It is much easier to graph a chart based on indexed values

than one based on actual values world over majority of the well-known indices are

constructed using Market Capitalization weighted method.

In practice, the daily calculation of SENSEX is done by dividing the aggregate market

value of the 30 companies in the Index by a number called the Index Divisor. The

Divisor is the only link to the original base period value of the SENSEX. The Divisor

keeps the Index comparable over a period of time and if the reference point for the

entire Index maintenance adjustments. SENSEX is widely used to describe the moodin the Indian Stock markets. Base year average is changed as per the formula new

base year average = old base year average*(new market value/old market value).


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NATIONAL STOCK EXCHANGE:

The NSE was incorporated in now 1992 with an equity capital of Rs 25 crores. The

International Securities Consultancy (ISC) of Hong Kong has helped in setting up

NSE. ISE has prepared the detailed business plans and installation of hardware and

software systems. The promotions for NSE were financial institutions, insurances

companies, banks and SEBI capital market ltd, Infrastructure leasing and financial

services ltd and stock holding corporation ltd.

It has been set up to strengthen the move towards professionalization of the capital

market as well as provide nationwide securities trading facilities to investors.NSE is

not an exchange in the traditional sense where brokers own and manage the

exchange. A two tier administrative set up involving a company board and agoverning abroad of the exchange is envisaged.

NSE is a national market for shares PSU bonds, debentures and government

securities since infrastructure and trading facilities are provided.

NSE-NIFTY:

The NSE on April 22, 1996 launched a new equity Index. The NSE-50. The new

index, which replaces the existing NSE-100 index, is expected to serve as an

appropriate Index for the new segment of futures and options.

Nifty means NationalIndex for Fifty Stocks.

The NSE-50 comprises 50 companies that represent 20 broad Industry groups with

an aggregate market capitalization of around Rs. 1, 70,000 crores. All companies

included in the Index have a market capitalization in excess of Rs 500 crores each

and should have traded for 85% of trading days at an impact cost of less than 1.5%.

The base period for the index is the close of prices on Nov 3, 1995, which makes one

year of completion of operation of NSEs capital market segment. The base value of

the Index has been set at 1000.

NSE-MIDCAP INDEX:


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The NSE midcap Index or the Junior Nifty comprises 50 stocks that represents 21

aboard industry groups and will provide proper representation of the midcap segment

of the Indian capital Market. All stocks in the index should have market capitalization

of greater than Rs.200 crores and should have traded 85% of the trading days at an

impact cost of less 2.5%.

The base period for the index is Nov 4, 1996, which signifies two years for completion

of operations of the capital market segment of the operations. The base value of the

Index has been set at 1000.

Average daily turnover of the present scenario 258212 (Laces) and number of

averages daily trades 2160(Laces).

At present, there are 24 stock exchanges recognized under the securities contract

(regulation) Act, 1956. They are of the Scheme at NAV based prices.

SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI):

In 1988 the Securities and Exchange Board of India (SEBI) was

established by the Government of India through an executive resolution, and was

subsequently upgraded as a fully autonomous body (a statutory Board) in the year 1992

with the passing of the Securities and Exchange Board of India Act (SEBI Act) on 30th

January 1992. In place of Government Control, a statutory and autonomous regulatoryboard with defined responsibilities, to cover both development & regulation of the

market, and independent powers has been set up. Paradoxically this is a positive

outcome of the Securities Scam of 1990-91

The basic objectives of the Board were identified as:

To protect the interests of investors in securities;

To promote the development of Securities Market; To regulate the securities market and

For matters connected therewith or incidental thereto.

Since its inception SEBI has been working targeting the securities and is

attending to the fulfillment of its objectives with commendable zeal and dexterity. The


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improvements in the securities markets like capitalization requirements, margining,

establishment of clearing corporations etc. reduced the risk of credit and also reduced

the market.

SEBI has introduced the comprehensive regulatory measures, prescribed

registration norms, the eligibility criteria, the code of obligations and the code of conduct

for different intermediaries like, bankers to issue, merchant bankers, brokers and sub-

brokers, registrars, portfolio managers, credit rating agencies, underwriters and others.

It has framed bye-laws, risk identification and risk management systems for Clearing

houses of stock exchanges, surveillance system etc. which has made dealing in

securities both safe and transparent to the end investor.

Another significant event is the approval of trading in stock indices (like S&P

CNX Nifty & Sensex) in 2000. A market Index is a convenient and effective product

because of the following reasons:

It acts as a barometer for market behavior;

It is used to benchmark portfolio performance;

It is used in derivative instruments like index futures and index options;

It can be used for passive fund management as in case of Index Funds.

Two broad approaches of SEBI is to integrate the securities market at the national level,

and also to diversify the trading products, so that there is an increase in number of

traders including banks, financial institutions, insurance companies, mutual funds,

primary dealers etc. to transact through the Exchanges. In this context the introduction

of derivatives trading through Indian Stock Exchanges permitted by SEBI in 2000 AD is

a real landmark. SEBI appointed the L. C. Gupta Committee in 1998 to recommend

the regulatory framework for derivatives trading and suggest bye-laws for Regulationand Control of Trading and Settlement of Derivatives Contracts. The Board of SEBI in

its meeting held on May 11, 1998 accepted the recommendations of the committee and

approved the phased introduction of derivatives trading in India beginning with Stock

Index Futures.


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CHAPTER-4

REVIEW OF LITERATURE


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LITERATURE REVIEW

The present study deals with the review of literature on Evaluating the Performance of

Indian

Mutual Fund Schemes. A number of studies on evaluating the performance of Indian

Mutual

Fund Schemes have been conducted in India and foreign countries. Review of some of

the

studies is presented in the following discussion: -

Jayadev (1996) evaluated the performance of two growth-oriented mutual funds namely

Mastergain and Magnum express by using monthly returns. Jensen, Sharpe and

Treynor

measures have been applied in the study and the pointed out that according to Jensen

and

Treynor measure Mastergain have performed better and the performance of Magnum

was poor

according to all three measures. Afza and Rauf (2009) in their study of open-ended

Pakistani

mutual funds performance using the quarterly data for the period of 1996-2006. The

study

measure the fund performance by using Sharpe ratio with the help of pooled time-series

and

cross sectional data and also focused on different attributes such as fund size,

expenses, age,

turnover and liquidity. The results found significant impact on fund performance.

Debasish


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(2009) studied the performance of selected schemes of mutual funds based on risk and

return

models and measures. The study covered the period from April 1996 to March 2005

(nine years).

The study revealed that Franklin Templeton and UTI were the best performers and Birla

Sun life,

HDFC and LIC mutual funds showed poor performance. Ali, Naseem and Rehman

(2010) in IRJC

International Journal of Marketing, Financial Services & Management Research

their study examined the performance of 10 mutual funds in which 5 were conventional

and 5

were Islamic for the period from 2006 to 2008 by using Sharpe and Treynor measures.

The

results found that the funds of Pakistan were able to add more value either conventional

or

Islamic. The study also found that some of the funds were underperformed, so these

funds were

facing diversification problems during the study period. Garg (2011) examined the

performance

of top ten mutual funds that was selected on the basis of previous years return. The

study

analyzed the performance on the basis of return, standard deviation, beta as well as

Treynor,

Jensen and Sharpe indexes. The study also used Carharts four-factor model for

analyze the


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performance of mutual funds. The results revealed that Reliance Regular Saving

Scheme Fund

had achieved the highest final score and Canara Robeco Infra had achieved the lowest

final score

in the one year category. Sondhi and Jain (2010) examined the market risk and

investment

performance of equity mutual funds in India. The study used a sample of 36 equity fund

for a

period of 3 years. The study examined whether high beta of funds have actually

produced high

returns over the study period. The study also examined that open-ended or close ended

categories, size of fund and the ownership pattern significantly affect risk-adjusted

investment

performance of equity fund. The results of the study confirmed with the empirical

evidence

produced by fama (1992) that high beta funds (market risks) may not necessarily

produced high

returns. The study revealed that the category, size and ownership have been

significantly

determinant of the performance of mutual funds during the study period. Prabakaran

and Jayabal

(2010) evaluated the performance of mutual fund schemes. The study conducted a

sample of 23

schemes were chosen as per the priority given by the respondents in Dharmapuri

district covered


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a period from April 2002 to March 2007. The study used the methodology of Sharpe,

Jensen and

Fama for the performance evaluation of mutual funds. The results of the study found

that 13

schemes out of 23 schemes selected had superior performance than the benchmark

portfolio in

terms of Sharpe ratio, 13 schemes had superior performance of Treynor ratio and 14

schemes had

superior performance according to Jensen measure. The Famas measure indicated in

the study

that the returns out of diversification were less. Thus the India Mutual funds were not

properly diversified


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CHAPTER-5

RESEARCH METHODOLOGY


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METHODOLOGY

A Sample of 4Schemes each from 4different types of Funds is being taken. Types of

Funds taken are follows: Diversified funds Large cap funds Mid cap funds Small cap

funds Sector funds Analysis has been done by using following Statistical tools: Sharpe

Ratio: It indicates the Risk-Return Performance of Portfolio. Beta: It measures the

volatility, or systematic risk, of a security or a portfolio in comparison to the market as a

whole. Standard Deviation: It shows the historical volatility. Annualized Return: It

indicate the return on return over the period of times.2.3 SIGNIFICANCE: Able to learnthe various analytical tools of Mutual Fund like Beta, Standard Deviation, Compounded

annual growth rate (CAGR) and Sharp Ratio. Get complete overview of Mutual Fund

industries in India. Able to know the past performance of various Mutual Funds

Schemes.

PRIMARY DATA

The main source the primary data was collected from the india infoline office the major

portion of data was secondary data

SECONDARY DATA

The secondary data was collected from the various websites and books which are

mentioned in the bibliography .


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TOOL USED

NET ASSETS VALE (NAV):The net assets value of the Fund is the cumulative

market value of the assets fund net of its liabilities. The Fund is dissolved or liquidated,

by selling off all the assets in the fund, this is the amount shareholders wouldcollectively own. This gives rise to the concept of the net assets value per unit, which is

the value, represented by the ownership of one unit in the fund. It is calculated simply

by dividing the net assets value fund by the number of units. However, most people

refer loosely to the NAV per unit as NAV, ignoring the per unit. We also abide by the

same convention

Calculation of NAV

The important part of the calculation is the valuation of the assets owned by the fund

.Once it is calculated, the NAV is simply the net value of assets divided by the number

of units outstanding. The detailed methodology for the calculation of the asset value is

given below

Asset value is equal to

Sum of market value of shares/debentures

+Liquid assets/cash held, if any

+Dividends/interest accrued

Amount due on unpaid assets

Expenses accrued but not paid

Details on the above items

For liquid shares/debentures, valuation is done on the basis of the last or closing market

price on the principal exchange where the security is traded


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For illiquid and unlisted and/or thinly traded shares/debentures, the value has to be

estimated .For shares this could be the book value per share or an estimated market

price if suitable benchmarks are available. For debenture and bonds, value is estimated

on the basis of yields of comparable liquid securities after adjusting for liquidity. The

value of fixed interest bearing securities moves in a direction opposite to interest rate

changes valuation of debentures and bonds is a big problem since most of them are

unlisted and thinly traded. This gives considerable leeway to the AMCs on valuation and

some of the AMCs are believed to take advantage of this and adopt flexible valuation

policies depending on the situation.

Interest is payable on debentures/bonds on a periodic basis say every 6 months. But,

with every passing day, interest is said to be accrued, at the daily interest rate, which is

calculated by dividing the periodic interest payment with the number of days in each

periods. Thus, accrued interest on a particular day is equal to the daily interest rate

multiplied by the number of days since the last interest payment date.

Usually, dividends are proposed at the time of the Annual General


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Key concepts:

Net asset value (NAV)

Net asset value is the market value of the assets of the schemes minus its liabilities.

The per unit NAV is the net asset value of the scheme divided by the number of units

outstanding on the valuation date.

Sale price:

Is the price you pay invested in a scheme? Also called offer price. It may include

sales load.

Repurchase price

Is the price at which closeended schemes repurchased its units and it many include

a backend load? This is also called bid price.

Redemption price:

Is the price at which open-ended schemes repurchased their units and close ended

schemes redeem their units on maturity such prices are NAV related.

Sales load/entry load:

Is a charge collected by a scheme when it sells the units? Also called. front -end load,

schemes that do not charge are called; not load schemes.

Repurchase/back-end/exit load:

Is a charge collected by a scheme when it buys back from the unit holders?


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CHAPTER-6

DATA ANALYSIS AND INTERPRETATION


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ANALYSIS OF MUTUAL FUND SCHEMES:

Mutual funds of the type equity are analyzed in the study, equity funds are volatile and

subject to market risks, analysis is conducted from 15-11-2013 to 14-02-2014, where

the trend of the equity funds of various AMCs Standard Chartered, HDFC, ICICI, and

RELIANCE MUTUAL funds are studied.

STANDARD CARTRED MUTUAL FUND

Standard Chartered Mutual Fund is well-established fund house and is a global arm of

the Standard Chartered Group. The Fund house strives to launch not just innovative

products, but products that truly add value to our investors. It was the first fund house to

launch an active management debt fund-the Dynamic Bond Fund - that had the

capability to mimic a cash fund or an income fund depending on market

situations. Standard Chartered Mutual Fund manages schemes through well-

researched and thoroughly tested processes like the 3 D Factor and the Equity Circle

process. Currently, the Standard Chartered Asset Management Company manages

assets in excess of Rs134bn and has touched the lives of more than millions of

investors residing in more than 1000 Indian towns.

Mr. Rajiv Anand, Head of Investments, Standard Chartered Mutual Fund, has been with

the fund since its inception in 2000. Mr. Anand has been responsible for

institutionalizing the investment management process including the 3D factor process at

Standard Chartered Mutual Fund. He joined Standard Chartered Grindlays Bank in the

year 1997 and was part of the Banks Treasury team from 1997 before taking the

assignment as Head of Investments, at Standard Chartered Mutual Fund. It was during

this assignment that Mr Anand was exposed to the cutting edge techniques of interest

rate and liquidity risk management. He began his career with HSBC bank in the year

1991 and was part of the Banks Treasury. Over the last 13 years he gained vast


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experience in the fixed income markets which has evolved as one of the vital cogs for

the growth of the Indian Economy.

Anil Mascarenhasand Mrudula Udaspose a few questions to Rajiv Anand who says,

"Corporate earnings will meet expectations on the whole. However, there may be a few

sectors that may disappoint."

Standard Chartered Equity Fund

Mutual Fund Standard Chartered Mutual Fund

Scheme Name Standard Chartered Premier Equity

Fund

Scheme Type Open Ended

Scheme Category Growth

Launch Date 5-Sep-05


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Indicate Load Separately 2.25%

Minimum Subscription Amount Rs. 25,000/-

Fund Manager Kenneth Andrade

Scheme Highlights

Investment Pattern The asset allocation under the Scheme will be as follows:

S.No Asset type Normal allocation %

1. Equities & equity related instruments 65-100

2. Debt & Money market instruments 0-35

3. Securitized debt instruments 0-35

Objective of Scheme to generate long term capital growth from an actively managed portfolio of

predominantly equity and equity related Instruments.


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Investment in derivatives up to 50% of the net assets of the scheme, investments in

securities lending unto 35% of the net assets of the scheme, investment in foreign debt

instruments unto 35% of the net assets of the scheme, includes investment in ADR and

GRAs issued by companies in India/equity of listed overseas companies as permitted

by SEBI regulations unto 50% of net assets of the scheme.

The scheme shall seek to generate long-term capital growth from an actively

managed portfolio of predominantly equity and equity related instruments. The scheme

portfolio would acquire, interalia, small and medium size businesses with good long

term penitential, which are available at cheap valuations. Such securities would be

identified through disciplined fundamental research keeping in view medium to long-term trend in the business environment.

The scheme shall endeavor to accumulate long-term investor wealth by opening

subscriptions to units during periods when stocks are available at reasonable

valuations. By doing so, the fund managers would endeavors to prevent short-term

money from flowing into the fund which can prove detrimental to the interests of long-

term investor. As the scheme would be sold to investors with a long-term investment

horizon, it is also expected that the portfolio would remain relatively more insulated to

day to day redemption pressures. The fund will close subscription, once it has collected

a predetermined manageable corpus (approximate amount), which will be decided by

the fund manager of the scheme depending on the available investment opportunities in

the stock market / if the fund manager is of the opinion that investment opportunities

have diminished. Thus the fund manager will endeavor to ensure that there are

sufficient assts available to meet the long-term objectives of the fund.


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Absolute Annualized Returns of Standard Chartered

Last 3 month last 6 months 1 years Since inception

-1.37 15.02 1.60 19.29

Table showing Absolute Annualized Returns of Standard Chartered

Chart showingAbsolute Annualized Returns of Standard Chartered

INTERPRETATION:

It is seen that the absolute annualized returns since inception is -1.37 to 19.29 during the 1 yr

period. This reveals that the returns in the first period as increased but fails to maintain the

consistency in the later stages. So that we conclude that it is an average performer.

STANDARD CHARTEREDEQUITY FUND PORTFOLIO

COMPAY NAME SECTORS % of portfolio

Exide industries Ltd

&Apollo types & Asahi

5125.21

Absolute Annualized Returns of Standard

Chartered

-5

0

5

10

15

20

25

Last3

month

last6

months

1years

Since

inception

Series1


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India glass Ltd Auto-ancillianies

Madres cement Ltd Cement 1905.25

Shree renuka sugar Ltd Consumer no durables 3428.20

Blue pat express limited Couriers 1006.93

Srei infrastructure finance

Ltd &shrirum transport

fianc company

Finance 819.09

Deep industries Ltd Gas 2286.96

ABG infrologistics limited

& suzlon energy Ltd

Industrial capital Goods 3844.85

Time techno plast Industial products 1359.31

Entertainment net work

Ltd& zee entertainment

enterprises

Media & entertainment 2871.56

Alphageo (India ) Ltd Oil 1674.20

Vimato laboratories Ltd Pharmaceuticals 1717.20

PTC India limited BGR

energy system Limited

Power 3079.39


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Pantaloon retail India Ltd

pv

Retailing 3147.49

Educomp solutions Ltd &

goldstone technologies

Ltd

Software 3676.16

Page Industries Ltd Textile products 1586.78

3m India Ltd Trading 1397.78

Axis bank Ltd Transportations 1388.14

Kaveri seed company Ltd Bank 3642.62

moser baer India limited Miscellaneous 2578.04

Joythy laboratories

limited

Hardware 1159.40

Aries agro limited Fmcy 1992.25

Consumer Durables other 1018.20

Mibor linked bond 2080.33

Money market instrument 292.73


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Corporate Debentures 6278.24

Cash equivalent 377.19

Net current asset total 847.85

NAV ANALYSIS OF STANDARD CHARTERED

DATENETASSET

VALUE

REPURCHASE

PRICE

SALE PRICE

15-11-2013 23.8859 23.8859 24.4233

22-11-2013 22.6646 22.6646 23.1746

29-11-2013 23.0990 23.0996 23.6193

5/12/2013 24.7021 24.7021 25.2579

12/12/2013 25.7337 25.7337 26.3127

19-12-2013 25.3594 25.3594 25.9300

26-12-2013 26.6948 26.6948 27.4694

3/1/2014 28.1880 28.1880 28.8222

10/1/2014 27.5027 27.5027 28.1215


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17-01-2014 28.1275 28.1275 28.7604

24-01-2014 23.5362 23.5362 24.0658

31-01-2014 23.7474 23.7474 24.2817

7/2/2014 23.7766 23.7766 24.3116

14-02-2014 22.4985 22.4985 23.0047

Chart showing NAV analysis of standard chartered

INTERPRETATION:

Standard chartered premier Equity Fund has portfolio of 24 scrips, the performance of

this fund was consistent during the period, the fund has show constant decrease in its

NAV from 23.8859 on 15-11-2013 to 22.4985 on 14-02-2014 with a slip of 1.3874on an

average it can be said that down trend has the last quarter.

0

5

10

15

20

25

30

35

15-11-2013

22-11-2013

29-11-2013

5/12/2013

12/12/2013

19-12-2013

26-12-2013

3/1/2014

10/1/2014

17-01-2014

24-01-2014

31-01-2014

7/2/2014

14-02-2014

NETASSET VALUE

REPURCHASE PRICE

SALE PRICE


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We can conclude from the above that standard chartered premier Equity Fund is

an average performer since the returns are flat and dividends paid are also in constant

over the years.

HDFC EQUITY FUND

Nature of Scheme Open Ended Equity Growth Scheme

Inception date Jan 01, 1995

Entry load

(as a % of the Applicable NAV)

In respect of each purchase / switch

in of Units less than Rs. 5 crore in

value, an Entry load of 2.25% is

payable. In respect of each

purchase / switch in of units equal to

or greater than Rs.5 crores in value,

no entry load is payable.

Exit Load

(as a % of the Applicable NAV)

Nil


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Minimum Application Amount Rs.5000 and in multiples of Rs.100

there of to open an account / folio.

Additional purchases is Rs. 1000

and in multiples of Rs. 100 there of.

Lock-in-period Nil

Net Asset Value Periodicity Every business day

Redemption Proceeds Normally dispatched within 3 days

Tax Benefits(As per present

Laws)

As per present tax laws.

Income distributed by the scheme

will be exempt from Income-tax in

the hands of investors with effect

from April 01, 2003.

Distribution tax, if applicable, shall

be payable by the respective

scheme(s) / plan(s). Units of the

scheme(polyps) are not subject to

Wealth-tax and Gift-tax


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SCHEME HIGHLIGHTS

Investment Pattern The asset allocation under the Scheme will be as follows:

S.No Asset Type (% of Portfolio) Risk Profile

1 Equities and Equity Related 80100 Medium to High

2 Debt & Money Market

Instruments

020 Low to Medium

Investment in securitized debt, if undertaken, would not exceed 20% of the net assets of

the scheme.

The scheme may also invest up to 25% of the net assets of the Scheme in derivatives

such as Futures & Options and such other derivative instruments as may be introduced

from time to time for the purpose of hedging and portfolio balancing and other uses asmay be permitted under the Regulations.

The Scheme may also invest a part of its , not exceeding 40% of its net assets, in

overseas markets in global depository receipts (GDRs), ADRs, overseas equity, bonds

and mutual funds and such other instruments as may be allowed under the regulations

from time to time. Also refer to the section on Policy on off-shore investments by the

Scheme(s).

Subject to the Regulations and the guidelines, the Scheme may, engage in

Stock Lending activities. Also refer to Section on Stock Lending by the Fund.


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If the investment in equities and related instruments falls below 70% of the

portfolio of the Scheme at any point in time, it would be endeavored to review and

rebalance the composition.

Notwithstanding anything stated above, subject to the regulations, the asset

allocation pattern indicated above may change from time to time, keeping in view

market conditions, market opportunities, applicable regulations and political and

economic factors. It may be clearly understood that the percentages stated above are

only indicative and are not absolute and that they can vary substantially depending

upon the perception of the AMC, the intention being at all times to seek to protect the

NAV of the scheme. Such changes will be for short term and defensive considerations.

Provided further and subject to the above, any change in the asset allocation affecting

the investment profile of the scheme and amounting to a change in the Fundamental

Attributes of the Scheme shall be effected in accordance with sub regulation (15A) of

regulation 18 of SEBI regulations.

Investment Strategy & Risk Control

In order to provide long term capital appreciation, the scheme will invest predominantly

in growth companies. Companies selected under this portfolio would as far as

practicable consist of medium to large sized companies which:

Are likely achieved above average growth than the industry;

Enjoy distinct competitive advantages, and

Have superior financial strengths.

The aim will be to build a portfolio, which represents a cross-section of the strong

growth companies in the prevailing market. In order to reduce the risk of volatility, thescheme will diversify across major industries and economic sectors.


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Absolute Annualized Return of HDFC

1year 3years 5years Since inception

36.82 40.75 52.13 24.99

4.3 Table showing absolute annualized return of HDFC

HDFC EQUITY FUND PORTFOLIO

Scrip Sector % of

portfolio

Net current assets 1.67

State bank of India Banks 10.05

Reliance industries

limited

Petroleum products 7.37

Sat yam computers IT-Software 6.47

Crompton greaves

limited

Industrial capital goods 6.44

Bharat heavy electricals

limited



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Infosys technologies

limited

IT-Software 6.41

Century textiles &

industries limited

Cement 6.23

Bharat electronics

limited


Amtek auto limited Auto and ancillaries 4.90

United phosphorus

limited

Pesticides 4.77

Mahindra & Mahindra

limited

Auto 4.16

Oil & natural gas

corporation limited

Oil 4.12

Voltas limited Consumer durables 3.12

Federal bank limited Banks 3.09

ITC Limited Consumer Non durables 3.00

CMC Limited Computer hardware 2.89

Dishman

pharmaceuticals &

Pharmaceuticals 2.64


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chemicals limited

Indo rama synthetics

(India) limited

Textiles synthetic 2.38

Bharat petroleum

corporation limited

Petroleum products 2.30

Datamatics technologies

limited

IT-Software 1.99

Avaya global connect

limited

Telecom equipment 1.86

JK industries limited Auto & ancillaries 1.54

Television eighteen

(i)limited

Media & entertainment 1.21


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4.2 NAV ANALYSIS OF HDFC

DATENETASSET

VALUE

REPURCHASE

PRICE

SALE PRICE

15-11-2013 210.78 210.78 215.523

22-11-2013 199.733 199.733 204.227

29-11-2013 201.59 201.59 206.126

5/12/2013 211.803 211.803 216.569

12/12/2013 218.36 218.36 223.273

19-12-2013 209.843 209.843 214.564

26-12-2013 217.682 217.682 222.58

3/1/2014 225.043 225.043 230.106

10/1/2014 220.013 220.013 224.963

17-01-2014 217.003 217.003 221.886

24-01-2014 193.685 193.685 198.043

31-01-2014 188.42 188.42 192.659

7/2/2014 185.194 185.194 189.361


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14-02-2014 186.056 186.056 190.242

CHART

INTERPRETATION:

HDFC Equity Fund has portfolio of 24 scrips, the performance of this fund was

consistent during the period, the fund has show constant decrease in its NAV from

210.78 on 15-11-2013 to 186.056 on 14-02-2014 with a slip of 24.724, on an average it

can be said that down trend has the last quarter. We can conclude from the above that

HDFC Equity Fund is an average performer since the returns are flat and dividends paid

are also in constant over the years

0

50

100

150

200

250

15-11-2013

22-11-2013

29-11-2013

5/12/2013

12/12/2013

19-12-2013

26-12-2013

3/1/2014

10/1/2014

17-01-2014

24-01-2014

31-01-2014

7/2/2014

14-02-2014

NETASSET VALUE

REPURCHASE PRICE

SALE PRICE


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3. ICICI PRUDENTIAL MUTUAL FUND:

Mutual Fund ICICI Prudential Mutual Fund

Scheme Name ICICI Prudential Equity & Derivatives Fund-Wealth Optimizer Plan



Launch Date 8-Nov-06

Indicate Load

Separately

Entry Load:2.25% of the applicable NAV,

Exit Load: For NFO Period:1% of

applicable NAV if redeemed within 6

months from date of allotment Post NFO:

Nil

Minimum

Subscription Amount

Rs.5000/-

Fund manager Mrs.Deven sangoi

Scheme highlights:

Objective of Scheme ; The investment objective of Wealth Optimizer Plan under the

scheme is to seek to provide capital appreciation and income distribution to the

investors by using equity derivatives strategies, arbitrage opportunities and pure equity

investments.

Entry Load:2.25% of the applicable NAV, Exit Load: For NFO Period:1% of applicable

NAV if redeemed within 6 months from date of allotment Post NFO: Nil


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TABLE-5

Absolute Annualized Returns of ICICI

1year 3years 5years Since inception

10.21% 35.21% 34.81% 28.49%

4.5 Table showing absolute returns of ICICI

Returns of ICICI PRUDENTIAL Equity Fund

INTERPRETATION:

It is seen that the absolute annualized returns since inception is 28.49% to 10.21%

during the 1 yr period. This tells us that the fund is considerably decreased returns on

March 31, 2013.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

1year 3years 5years Sinceinception

Returns

Returns


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NAV ANALYSIS OF ICICI PRUDENTIAL EQUITY FUND

DATENETASSET

VALUE

REPURCHASE

PRICESALE PRICE

15-11-2013 10.98 10.92 10.98

22-11-2013 10.97 10.91 10.97

29-11-2013 10.97 10.91 10.97

5/12/2013 11.01 10.95 11.01

12/12/2013 11.04 10.98 11.04

19-12-2013 11.05 10.99 11.05

26-12-2013 11.07 11.01 11.07

2/1/2014 11.09 11.04 11.09

9/1/2014 11.14 11.08 11.14

16-01-2014 11.13 11.07 11.13

23-01-2014 11.23 11.18 11.23

30-01-2014 11.2 11.15 11.2

6/2/2014 11.23 11.17 11.23


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13-02-2014 11.26 11.21 11.26

INTERPRETATION:

ICICI Prudential Equity fund the performance of this fund was constantly

increasing during the period, the value of the fund had better increased, NAV has

increased from 10.98 on 15-11-2013 to 11.26 on 13-02-2014 with a slip 0.28, on an

average it can be assessed that the fund is doing well. With the fluctuations in the

market this fund is volatile.

From the above findings we can conclude that ICICI Prudential equity fund is

better average performer where the returns are highly fluctuating and NAV is up trend

10.7

10.8

10.9

11

11.1

11.2

11.3

15-11-2013

22-11-2013

29-11-2013

5/12/2013

12/12/2013

19-12-2013

26-12-2013

2/1/2014

9/1/2014

16-01-2014

23-01-2014

30-01-2014

6/2/2014

13-02-2014

NETASSET VALUE

REPURCHASE PRICE

SALE PRICE


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4.RELIANCE EQUITY FUND:

Mutual Fund Reliance Mutual Fund

Scheme Name Reliance Equity Fund



Launch Date 6-Feb-06

Minimum Subscription

AmountRs 5000/-

Fund manager Mr. SUNIL SINGHANIA

Scheme highlights

Objective of Scheme: The primary investment objective of the scheme is to seek to

generate capital appreciation & provide long term growth opportunities by investing in aportfolio constituted of equity & equity related securities of top 100 companies by market

capitalization & of companies which were available in the derivatives segment from time

to time and the secondary objective is to generate consistent returns by investing in

debt and money market securities


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Absolute Annualized Returns of RELAINCE EQUITY FUND

Years Returns

1year 8.65%

Since inception

8.74%

Returns of RELIANCE Equity Fund

Chart showingreturns of RELIANCE Equity fund

INTERPRETATION:

It is seen that the absolute annualized returns since inception is 8.74% to 8.65% during

the 1 yr period. This tells us that the fund is considerably decreased returns on March

31, 2013.

8.60%

8.62%

8.64%

8.66%

8.68%

8.70%

8.72%

8.74%

8.76%

1year Since inception

Returns

Returns


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NAV ANALYSIS OF RELIANCE EQUITY FUND

DATENETASSET

VALUE

REPURCHASE

PRICESALE PRICE

15-11-2013 16.48 16.48 16.85

22-11-2013 15.93 15.77 16.29

29-11-2013 16.13 15.97 16.49

5/12/2013 17.08 16.91 17.46

12/12/2013 17.51 17.33 17.9

19-12-2013 16.87 16.7 17.25

26-12-2013 17.63 17.45 18.03

2/1/2014 18.13 17.95 18.54

9/1/2014 18.14 17.96 18.55

16-01-2014 17.5 17.33 17.89

23-01-2014 15.65 15.49 16

30-01-2014 15.53 15.37 15.88

6/2/2014 15.62 15.46 15.97


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13-02-2014 14.22 14.08 14.54

INTERPRETATION:

RELIANCE Equity Fund has portfolio of securities, the performance of this fund was

good during the period, the NAV has initially increased on an average and after

decreasedfrom 16.48 on 15-11-2013 to 14.22 on 13-02-2014 with a slip of 2.26, it canbe said that the trend has a flat decrease for the last quarter. From the above findings

we can conclude that RELIANCE equity fund is an average performer and fluctuating

over the quarter.

0

2

4

6

8

10

12

14

16

1820

15-11-2013

22-11-2013

29-11-2013

5/12/2013

12/12/2013

19-12-2013

26-12-2013

2/1/2014

9/1/2014

16-01-2014

23-01-2014

30-01-2014

6/2/2014

13-02-2014

NETASSET VALUE

REPURCHASE PRICE

SALE PRICE


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NAVS OF VARIOUS FUND SCHEMES

DATE HDFC ICICI RELIANCE

STANDARD

CHARTERED

15-11-2013 210.78 10.98 16.48 23.8859

22-11-2013 199.73 10.97 15.93 22.6646

29-11-2013 201.59 10.97 16.13 23.0990

5/12/2013 211.8 11.01 17.08 24.7021

12/12/2013 218.36 11.04 17.51 25.7337

19-12-2013 209.84 11.05 16.87 25.3594

26-12-2013 217.68 11.07 17.63 26.6948

2/1/2014 225.04 11.09 18.13 28.1880

9/1/2014 220.01 11.14 18.14 27.5027

16-01-2014 217 11.13 17.5 28.1275

23-01-2014 193.69 11.23 15.65 23.5362

30-01-2014 188.42 11.2 15.53 23.7474


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Returns of various Schemes

Years HDFC ICICI

1year 10.21% 36.82%

3year 35.21% 40.75%

5year 34.81% 52.13%

Since inception

28.49% 24.99%

COMPARISON OF RETURNS OF VARIOUS SCHEMES

Comparison of various schemes on the basis of annualized returns reveals that among

the Equity-Growth based funds, ICICI Equity Fund is established as a better fund than

HDFC Equity Fund. While the returns are 36.82% per 1 yr period compared to HDFC

Equity fund with 10.21%.

Annualized returns show that ICICI Equity Fund had better returns since inception of

the fund and can be said as good fund than the HDFC.


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CHAPTER-7

CONCLUSION AND RECOMMENDATIONS


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CONCLUSIONS:

1. From the findings of standard chartered equity fund. We can analyze that fund is

average performer and perhaps below average performer since the returns flat

over years.

2. From the findings of HDFC equity fund we can analyze that fund is the best

performer since the returns and Nav are good and also consistent over year.

3. From the findings of Reliance equity fund we can analyze that the fund is

average performer where the returns are highly fluctuating and NAV is down

trend.

4. From the findings of ICICI equity fund. We can analyze that the fund is average

performer and perhaps below average performer in terms NAV since the return

flat over years.

5. Comparing of various schemes on the basis of annualized returns that among

the equity based fund. HDFC equity fund is established as better fund than ICICI

equity fund, standard chartered and Reliance equity fund. Annualized returns

show that HDFC equity fund had better returns since in caption of the fund and

can be said has good fund than the other three funds.6. Comparative analysis of NAV revels that ICICI equity is under performing when

compared to standard chartered equity fund, Reliance equity fund and HDFC

equity fund. While standard chartered equity is average performer and Reliance

equity find is below average performer when compared with Standard Chartered,

and HDFC. Therefore we can conclude that HDFC equity fund is better fund than

standard chartered equity fund, ICICI equity fund and Reliance equity fund.


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SUGGESTIONS:

Necessary steps are needed to be taken by the Standard chartered mutual fundsto bring the awareness to the public.

Fully Done With Changes

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